Procter & Gamble (PG) stock is trading notably lower Tuesday after the consumer products giant reported fiscal fourth-quarter earnings results that were mixed compared with analysts' expectations.
In the three months ended June 30, P&G's revenue declined 0.1% year-over-year to $20.5 billion due to a 2% unfavorable foreign exchange impact. This offset a 1% rise in volume and a 1% increase in prices. The company said its earnings per share (EPS) improved 2.2% from the year-ago period to $1.40.
"Fiscal year 2024 was another year of strong results for P&G," said Procter & Gamble CEO Jon Moeller in a statement. "The team met or exceeded our going-in plans for organic sales growth, core EPS growth, cash generation and cash returned to shareowners in a challenging economic and geopolitical environment."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wall Street, meanwhile, was anticipating revenue of $20.7 billion and earnings of $1.37 per share, according to Yahoo Finance.
"As we look forward to fiscal 2025, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity – each in-line with our long-term growth algorithm," Moeller said.
For fiscal 2025, Procter & Gamble is targeting revenue growth in the range of 2% to 4%. It expects earnings per share to arrive between $6.91 to $7.05, which is in-line with analysts' forecasts for 3% revenue growth and earnings of $6.97 per share.
Is Procter & Gamble stock a buy, sell or hold?
Heading into Tuesday's session, Procter & Gamble was one of the better-performing Dow Jones stocks this year, up 18.2% on a total return basis (price change plus dividends).
As a result, Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for PG is $174.68, representing an upside of more than 9% from current levels. Additionally, the consensus recommendation is Buy.
Speaking for the bulls is UBS Global Research analyst Peter Grom, who has a Buy rating on PG. While Grom did not expect the company's fiscal Q4 results to be a positive catalyst for the shares amid lagging top-line growth, he has "high conviction in P&G being able to deliver on-algorithm growth in fiscal 2025, which should drive continued outperformance in our view."
Grom has an above-average price target of $191 on Procter & Gamble.
Related Content
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
Retire in Finland and Live the Nordic DreamHere's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift StocksResilience and de-escalation defined another generally positive day for financial markets.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden RisksPotential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid OffLife insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
Stock Market Today: Tesla Drags on Stocks Amid Musk-Trump FeudSentiment has soured between President Trump and his once-loyal ally, Tesla CEO Elon Musk.
